The Bank of Korea will support small and medium-sized enterprises affected by wildfires in the Ulsan, Gyeongbuk, and Gyeongnam regions through financial intermediary support loans. The financial intermediary support loan is a system that allows the central bank to support part of the loans for small and medium-sized enterprises and small business owners handled by banks at low interest to reduce borrowing rates.
The Bank of Korea announced on the 1st that it has urgently allocated 75 billion won from the financial intermediary support loan limit reserve to the regional headquarters overseeing the wildfire-affected areas. Of this, 40 billion won was allocated to the Daegu and Gyeongbuk headquarters, 15 billion won to the Pohang headquarters, 10 billion won to the Gyeongnam headquarters, and 10 billion won to the Ulsan headquarters.
The target of the funding is small and medium-sized enterprises affected by this wildfire. Small and medium-sized enterprises, small business owners, and self-employed individuals who have received a damage confirmation certificate from local governments are eligible. Existing beneficiaries of the financial intermediary support loan are also included.
The support amount is 100% of the financial institution's loan handling amount. It includes new loans, maturity extensions, and refinancing within one year of maturity for the target.
The Bank of Korea noted that it plans to provide additional support if necessary after assessing the wildfire damage situation and the loan demand of the targeted small and medium-sized enterprises.